Unaudited Consolidated Statements of Financial Position

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2 Unaudited Consolidated Statements of Financial Position (expressed in thousands of Canadian dollars) Assets As at December 31, (Restated - Note 3) Current assets Cash 178,601 71,249 Accounts receivable trade and other 75,822 77,397 Inventories 53,540 51,543 Prepaid expenses and deposits 16,931 12,920 Income tax receivable 642 2,268 Total current assets 325, ,377 Restricted cash 16,836 20,383 Property and equipment (note 5) 1,821,384 1,742,674 Intangibles 2,164 2,392 Goodwill 7,150 7,150 Deferred income tax asset 4,094 3,022 Other long-term assets 48,469 34,827 Liabilities 2,225,633 2,025,825 Current liabilities Accounts payable and accrued liabilities 200, ,809 Current portion of obligations under finance leases 2,904 2,762 Current portion of long-term incentive plan 5,466 5,844 Current portion of long-term debt (note 7) 131, ,729 Current portion of consideration payable 4,387 Dividends payable 5,632 5,014 Income tax payable 571 Total current liabilities 347, ,545 Obligations under finance leases 3,203 5,219 Long-term debt (note 7) 1,024, ,080 Convertible Units (note 8) 194, ,540 Deferred income tax liability 162, ,740 Other long-term liabilities 65,853 65,679 1,796,994 1,743,803 Equity 428, ,022 Contingencies (note 12) Economic dependence (note 13) Subsequent events (note 15) 2,225,633 2,025,825 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

3 Unaudited Consolidated Statements of Changes in Equity (expressed in thousands of Canadian dollars) Capital Deficit Exchange differences on foreign operations Contributed surplus Equity component of Convertible Units Total Balance - December 31, ,819 (919,328) 127 1,041, ,963 Adjustment on initial adoption of IFRS 15 (net of tax) (note 3) 2,912 2,912 Restated balance at January 1, ,819 (916,416) 127 1,041, ,875 Net income for the period 147, ,320 Other comprehensive income for the period (net of tax) 7,553 (7,824) (271) Comprehensive income for the period 154,873 (7,824) 147,049 Dividends (44,269) (44,269) Issuance of Convertible Units 2,981 2,981 Stock options exercised 11,376 (779) 10,597 Expense related to stock-based compensation plans Balance ,195 (805,812) (7,697) 1,041,033 2, ,700 Net income for the period 20,003 20,003 Other comprehensive income for the period (net of tax) 11,900 2,418 14,318 Comprehensive income for the period 31,903 2,418 34,321 Dividends (15,009) (15,009) Stock options exercised 4,217 (289) 3,928 Expense related to stock-based compensation plans Balance - December 31, ,412 (788,918) (5,279) 1,040,826 2, ,022 Net income for the period 64,969 64,969 Other comprehensive income for the period (net of tax) 8,226 5,793 14,019 Comprehensive income for the period 73,195 5,793 78,988 Dividends (49,305) (49,305) Issuance of shares, net of transaction costs and related tax 108, ,498 Dividend reinvestment plan 8,217 (374) 7,843 Stock options exercised 370 (25) 345 Expense related to stock-based compensation plans Balance ,497 (765,402) 514 1,041,049 2, ,639 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

4 Unaudited Consolidated Statements of Income For the three and nine-month periods ended 2018 and 2017 (expressed in thousands of Canadian dollars, except earnings per share) Three months ended Nine months ended (Restated - Note 3) (Restated - Note 3) Operating revenue (note 13) Passenger 336, ,216 1,003, ,932 Other 29,750 19,469 89,448 47, , ,685 1,092, ,167 Operating expenses (note 13) Salaries, wages and benefits 113, , , ,522 Depreciation and amortization 29,950 27,149 89,557 71,747 Aircraft maintenance materials, supplies and services 56,421 44, , ,561 Airport and navigation fees 44,991 45, , ,962 Aircraft rent 24,592 23,980 73,162 75,711 Terminal handling services 4,924 5,936 16,386 21,719 Other 36,711 31, , , , , , ,282 Operating income 56,027 56, , ,885 Non-operating (expenses) income Interest revenue ,925 1,343 Interest expense (14,863) (12,283) (43,374) (31,513) (Loss) gain on disposal of property and equipment (194) 3 (186) (184) Foreign exchange gain (loss) 11,384 31,837 (22,724) 61,844 Other (2,797) 20,208 (63,859) 32,177 Income before income taxes 53,230 76,220 91, ,062 Income tax (expense) recovery (note 9) Current income tax (1,475) (188) (1,658) (1,275) Deferred income tax (8,033) 3,273 (24,505) (6,467) (9,508) 3,085 (26,163) (7,742) Net income 43,722 79,305 64, ,320 Earnings per share, basic Earnings per share, diluted The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

5 Unaudited Consolidated Statements of Comprehensive Income For the three and nine-month periods ended 2018 and 2017 (expressed in thousands of Canadian dollars) Three months ended Nine months ended (Restated - Note 3) (Restated - Note 3) Net income 43,722 79,305 64, ,320 Other comprehensive income Items that will not be subsequently reclassified to the statements of income Actuarial (loss) income on employee benefit liabilities, net of tax recovery (expense) of 672 and (2,509) (2017-1,863 and 2,887) (1,740) 4,958 6,499 7,553 Change in fair value of financial assets, net of tax expense of 36 and ,727 Items that will be subsequently reclassified to the statements of income Exchange differences on translation of foreign operations (5,140) (8,246) 5,793 (7,824) Comprehensive income 37,097 76,017 78, ,049 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

6 Unaudited Consolidated Statements of Cash Flows For the three and nine-month periods ended 2018 and 2017 (expressed in thousands of Canadian dollars) Cash provided by (used in) Three months ended Nine months ended (Restated - Note 3) (Restated - Note 3) Operating activities Net income 43,722 79,305 64, ,320 Charges (credits) to operations not involving cash Depreciation and amortization 29,950 27,149 89,557 71,747 Amortization of prepaid aircraft rent and related fees ,231 2,206 Loss (gain) on disposal of property and equipment 194 (3) Unrealized foreign exchange (gain) loss (13,982) (31,088) 16,613 (63,226) Realized foreign exchange loss 2,145 1,580 5,896 6,828 Effect of foreign exchange rate changes on cash 820 1,275 (706) 4,791 Deferred income tax expense (recovery) 8,033 (3,273) 24,505 6,467 Other (500) (1,325) 215 (1,123) 71,313 74, , ,194 Net changes in non-cash balances related to operations (note 14) 10,616 68,801 (24,247) 58,454 Financing activities 81, , , ,648 Repayment of obligations under finance leases (724) (1,278) (2,113) (3,964) Repayment of long-term borrowings (29,869) (20,016) (91,856) (61,324) Convertible Units, net of transaction costs 195,972 Long-term borrowings 56, , , ,661 Repayment of consideration payable (6,500) (4,527) (13,000) Issuance of shares, net of transaction costs ,084 Stock options exercised 90 5, ,597 Dividends (12,785) (14,825) (40,844) (44,174) Investing activities 12,984 73,328 69, ,768 Acquisition of leased aircraft, net of debt and cash assumed 891 (30,215) Increase in security deposits and maintenance reserves 2,952 10,016 7,097 13,548 Additions to property and equipment (67,192) (191,127) (154,539) (407,136) Proceeds on disposal of property and equipment (Increase) decrease in restricted cash (2,058) (13,800) 3,730 (13,955) (65,933) (194,017) (143,339) (437,748) Effect of foreign exchange rate changes on cash (2,384) (5,913) 1,850 (9,429) Net change in cash during the periods 26,596 16, , ,239 Cash Beginning of periods 152, ,157 71,249 23,491 Cash End of periods 178, , , ,730 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

7 For the period ended General information Chorus Aviation Inc. ("Chorus") is a holding company with various aviation interests incorporated on September 27, 2010, pursuant to the Canada Business Corporations Act (the "CBCA"). The registered office of Chorus is located at 100 King Street West, 1 First Canadian Place, Suite 6200, P.O. Box 50, Toronto, Ontario, M5X 1B8 and its country of domicile is Canada. The accompanying unaudited interim condensed consolidated financial statements (the financial statements ) are of Chorus. References to Chorus in the following notes to the consolidated financial statements refer, as the context may require, to one or more of Chorus Aviation Inc. and its current and former subsidiaries. Chorus primary business activities include contract flying, aircraft leasing and maintenance, repair and overhaul services. Contract flying is currently Chorus primary business and these flying operations are conducted through both its Jazz Aviation LP ("Jazz") and Voyageur Aviation Corp. ("Voyageur") subsidiaries. Through Jazz's operations, Chorus provides a significant part of Air Canada s domestic and transborder network. Chorus and Air Canada are parties to an Amended and Restated Capacity Purchase Agreement dated January 1, 2015 (the "CPA"), under which Air Canada purchases substantially all of Jazz s fleet capacity at pre-determined rates. Chorus is economically and commercially dependent upon Air Canada and one of its subsidiaries, as, in addition to being Chorus primary source of revenue, these entities currently provide significant services and aircraft to Chorus (refer to note 13 - Economic Dependence for further details). Jazz also operates charter flights for a variety of customers. Voyageur Airways Limited ("Voyageur Airways") provides specialized contract ACMI (aircraft, crew, maintenance and insurance) flying, such as medical, logistical and humanitarian flights, to international and domestic customers. Chorus also conducts business in aircraft leasing and is growing this business. Chorus aircraft leasing portfolio includes a fleet of 34 Q400s, five CRJ900s and eight Dash 8-300s which are currently operated by Jazz under the CPA. In addition, through its subsidiary Chorus Aviation Capital Corp. ("Chorus Aviation Capital" or "CAC"), the aircraft leasing portfolio includes four CRJ1000s, seven ATR s, six Q400s, two Embraer 195s, four Embraer 190s and two CRJ900s. Voyageur Airways and North Bay Leasing Inc. ("North Bay Leasing") also carry on a small amount of leasing activity. In addition to contract flying and aircraft leasing, Chorus provides certain aviation industry services through both Jazz and Voyageur. Maintenance, repair and overhaul, including the sale of parts, and airport handling operations (both passenger and ramp handling), are businesses of both subsidiaries. Under the CPA, Chorus has historically experienced greater demand for its services in the second and third quarters of the calendar year and lower demand in the first and fourth quarters of the calendar year, principally as a result of the high number of leisure travelers and their preference for travel during the summer months. Seasonality has little effect on the operations of Voyageur, CAC, and other lines of business carried on by Chorus. Chorus has substantial fixed costs that do not meaningfully fluctuate with demand in the short-term. (1)

8 For the period ended Basis of presentation These financial statements are in compliance with International Accounting Standards ("IAS") 34, Interim Financial Reporting. Accordingly, certain information included in annual financial statements prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board, have been omitted or condensed. The preparation of financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying Chorus' accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, have been set out in note 3 of Chorus annual consolidated financial statements for the year ended December 31, These financial statements should be read in conjunction with Chorus consolidated financial statements for the year ended December 31, 2017 and note 3 of the unaudited interim condensed consolidated financial statements for the period ended March 31, These financial statements have been authorized for issuance by the Board of Directors on November 13, Significant accounting policies, judgements and estimation uncertainty Accounting policies Except as otherwise indicated hereunder, these financial statements have been prepared using the same policies and methods of computation as the annual consolidated financial statements of Chorus for the year ended December 31, New accounting standards adopted during the period IFRS 15 - Revenue from Contracts with Customers On January 1, 2018, Chorus adopted IFRS 15 Revenue from Contracts with Customers ("IFRS 15" or the new standard ) using the full retrospective method applied to contracts that were not completed as of January 1, Chorus also elected not to restate contracts that began and ended in the comparative period. IFRS 15 establishes a new control-based revenue recognition model and the adoption of the new standard required restatement of certain previously reported results, relating to the following accounting changes: A portion of maintenance fees earned under the CPA is recognized using a different methodology than under the previous standard. Based on more specific guidance related to the identification of the contract and performance obligations, revenue recognition related to these services has been accelerated. Some pass-through billings previously recognized as revenue have been recorded net of the related costs. This change relates to costs that Chorus incurs on behalf of Air Canada, for which Chorus is deemed to be acting as an agent. Impacts on financial statements The following tables summarize the impacts of adopting IFRS 15 on Chorus consolidated financial statements. Consolidated Statements of Financial Position January 1, 2017 As previously reported IFRS 15 adoption As restated Deferred income tax liability 126,099 1, ,223 Accounts payable and accrued liabilities 173,656 (4,036) 1 169,620 Equity 138,963 2, ,875 (2)

9 For the period ended Significant accounting policies, judgements and estimation uncertainty (continued) Consolidated Statements of Financial Position December 31, 2017 As previously reported IFRS 15 adoption As restated Deferred income tax liability 134,240 1, ,740 Accounts payable and accrued liabilities 216,197 (5,388) 1 210,809 Equity 278,134 3, ,022 1 Adjustments related to acceleration of revenue recognition on a portion of maintenance fees. 2 Adjustments related to pass-through revenue recorded net of related costs. Consolidated Statements of Income Three months ended 2017 Nine months ended 2017 As previously reported IFRS 15 adoption As restated As previously reported IFRS 15 adoption As restated Revenue 344,632 (947) 1,2 343, ,584 (2,417) 1,2 996,167 Other expense 32,167 (1,280) 2 30, ,830 (3,411) 2 101,419 Deferred income tax expense 3,366 (93) 3,273 (6,190) (277) (6,467) Net income 79, , , ,320 Earnings per share, basic Earnings per share, diluted Adjustments related to acceleration of revenue recognition on a portion of maintenance fees. 2 Adjustments related to Pass-Through Revenue recorded net of related costs. Accounting standards issued but not yet applied The IASB issued IFRS 16 Leases ("IFRS 16") effective for annual periods beginning on or after January 1, IFRS 16 provides a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessees and lessors. It supersedes IAS 17 Leases ("IAS 17") and IFRIC 4 Determining whether an Arrangement contains a Lease. Entities have the option of transitioning to IFRS 16 using either a full retrospective approach or a modified retrospective approach. IFRS 16 eliminates the classification of leases as either operating or finance for lessees and, instead, introduces a single lessee accounting model for all leases with a term of more than 12 months, unless the underlying asset is of low value. As a lessee, an entity recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. Lessor accounting under the new standard remains largely similar to IAS 17, with the exception of new requirements relating to subleases. (3)

10 For the period ended Significant accounting policies, judgements and estimation uncertainty (continued) Chorus is continuing to evaluate the impact that the new standard will have on the consolidated financial statements. We anticipate using the full retrospective transition approach and expect that the new requirements will significantly impact Chorus' statement of financial position and statement of income. Details on the analysis performed to date in relation to the implementation of IFRS 16 are as follows: Changes identified in relation to the CPA Lease components embedded in the CPA related to providing Air Canada the right to use the Covered Aircraft (as defined in the CPA) are currently accounted for as operating leases. The associated lease income generated is included in revenue in the statement of income. As of 2018, Chorus had 35 aircraft and six spare engines that are leased or subleased from Air Canada and its subsidiary and used as part of the Covered Aircraft to fulfill its obligations under the CPA. Currently, these leased aircraft and spare engines are accounted for as operating leases. Chorus has determined that these lease or sublease agreements and the CPA meet the contract combination requirements in IFRS 16 and therefore should be accounted for as a single contract. When viewing the agreements as one contract, Chorus does not have the right to direct the use of the aircraft and therefore, no leases will have been identified, from both the lessee perspective and lessor perspective. This conclusion will result in the following outcomes: There will be no impact to the statement of financial position compared to the current accounting because Chorus will not have a lease or sublease of the aircraft from Air Canada and its subsidiary (as the lessee) or an embedded lease via the CPA to Air Canada (as a lessor). Revenue and operating expenses will be reduced by equal amounts, corresponding to the amount of lease payments made. Chorus currently has recorded leasehold improvements, deferred lease inducements, deferred transaction fees and prepaid rent related to certain of these 35 aircraft and six engines. Given that a lease no longer exists, there can also no longer be these related amounts. Going forward, costs related to the leasehold improvements will be viewed as services provided by Chorus to AC for which control transfers as the improvements are performed. As Chorus is entitled to compensation for these services, but payments are due as the CPA progresses, these balances will be recorded as unbilled receivables. The deferred transaction costs, deferred leases inducements and prepaid rent will be recognized as both a receivable and a payable to AC go forward. Neither of these balance sheet classification changes will have an impact on the income statement. As of 2018, Chorus had five aircraft used as part of the Covered Aircraft that are leased from third parties. These third party leases are currently classified as a mix of operating and finance leases. Chorus has determined that it is subleasing the aircraft to Air Canada and therefore is required to assess the classification of these leases by reference to the right-of-use asset arising from the head lease rather than the underlying asset. As a result, Chorus expects that the classification of the subleases, that are currently classified as operating leases, will change to finance leases. Chorus is in the process of determining the impacts to its statement of financial position and statement of income. No changes compared to the current accounting are expected in relation to the remainder of the Covered Aircraft used under the CPA, as they are owned by Chorus. (4)

11 For the period ended Significant accounting policies, judgements and estimation uncertainty (continued) Changes identified in other arrangements To date, Chorus has also identified that it is a lessee with respect to the following categories of assets, which will result in the recognition of right-of-use assets and lease liabilities under IFRS 16: third party leased aircraft used to provide charter and contract flying services; and the right to use designated space at airport locations. Chorus is evaluating the population of leases and determining the measurement of the right-of-use assets and lease liabilities related to the leases. 4 Revenue from contracts with customers Chorus operations and main revenue streams are those described in the annual consolidated financial statements for the year ended December 31, The nature and effect of initially applying IFRS 15 is disclosed in Note 3. Chorus earns revenue from contracts with customers in addition to aircraft leasing. The table below excludes 80,019 and 234,572 for the three and nine months ended 2018, respectively (for the three and nine months ended ,857 and 188,797 respectively), in other sources of revenue relating to lease income, including any rights to use specified aircraft that have been identified as lease components embedded in the CPA and contract flying service agreements. Revenue is disaggregated primarily by nature and category in the underlying contract. Three months ended Nine months ended Controllable revenue 177, , , ,926 Fixed margin and infrastructure fee per Covered Aircraft 27,918 27,918 83,753 83,378 Incentive revenue 2,412 2,486 9,743 10,542 CPA pass-through revenue 58,621 55, , ,367 Charter and other contract flying revenue 11,929 12,782 35,171 37,825 Passenger revenue 278, , , ,038 Other revenue 8,512 8,312 28,118 30,332 Revenue 286, , , ,370 (5)

12 For the period ended Property and equipment Opening net book value Year ended December 31, 2017 Nine months ended 2018 Additions Disposals/ deposits applied Depreciation for the year Closing/ opening net book value Additions Disposals/ deposits applied Depreciation for the period Closing net book value Flight equipment 1,155, ,122 (229) (88,530) 1,679, ,567 (559) (79,436) 1,759,768 Facilities 32,153 3,721 (1,946) 33,928 2,164 (1,535) 34,557 Equipment 12,024 5,136 (5,273) 11,887 2,141 (4,411) 9,617 Leaseholds 5,586 3,718 (1,876) 7,428 1,681 (1,783) 7,326 Flight equipment under finance leases 13,303 (5,298) 8,005 (2,150) 5,855 Deposits on aircraft/ engines 2, (1,029) 2,230 2,031 4,261 Total 1,221, ,368 (1,258) (102,923) 1,742, ,584 (559) (89,315) 1,821,384 Cost At December 31, 2017 At 2018 Accumulated depreciation Net book value Cost Accumulated depreciation Net book value Flight equipment 2,038,527 (359,331) 1,679,196 2,164,128 (404,360) 1,759,768 Facilities 45,121 (11,193) 33,928 47,285 (12,728) 34,557 Equipment 73,937 (62,050) 11,887 75,601 (65,984) 9,617 Leaseholds 33,035 (25,607) 7,428 35,217 (27,891) 7,326 Flight equipment under finance leases 14,337 (6,332) 8,005 14,337 (8,482) 5,855 Deposits on aircraft/engines 2,230 2,230 4,261 4,261 Total 2,207,187 (464,513) 1,742,674 2,340,829 (519,445) 1,821,384 For the nine months ended 2018, the table above includes the following non-cash transactions: foreign currency adjustments of 14,667 (2017-3,058); and an adjustment related to the acquisition of Q400s through the issuance of shares in July 2017 of Credit facility On August 30, 2017 Chorus entered into a three-year committed operating credit facility and on June 7, 2018, extended the term of that facility for a further year ending August 30, The facility provides Chorus and certain designated subsidiaries (collectively, the "Credit Parties") with a committed limit of up to 50,000 with the opportunity to borrow up to a further 25,000 on a demand basis, subject in each case to a borrowing base calculation, based principally on the value of eligible accounts receivable, inventory and equipment. As at 2018, no amounts were drawn on the facility, however, Chorus has provided letters of credit totaling 6,754 that reduce the amount available under this facility. The indebtedness under this facility is secured by all present and after-acquired personal property of the Credit Parties, excluding aircraft, engines and certain real estate property. It contains customary representations, warranties and covenants, including maximum total leverage and fixed charge covenants. Under the terms of this credit facility, Chorus is required to maintain a maximum ratio of total debt to EBITDA, as well as a minimum ratio of EBITDA to fixed charges. At 2018, Chorus was in compliance with these covenants. (6)

13 For the period ended Long-term debt Long-term debt consists of the following: Amortizing term loans As at December 31, Secured by aircraft (1a) 1,135,884 1,093,350 Secured by engines (1b) 10,745 11,459 Nova Scotia Jobs Fund loan - secured by office building (2) 9,000 10,000 1,155,629 1,114,809 Less: Current portion 131, ,729 1,024, ,080 (1) Amortizing term loans a) Secured by aircraft - Individual term loans, repayable in monthly, quarterly, or semi-annual instalments, ranging from 89 to 1,314, bearing fixed, floating, and floating interest fixed via swap agreements at a weighted average rate of 4.013%, maturing between April 2020 and September 2029, each secured primarily by its respective aircraft and engines. These instalments are payable in USD or Euro and have been converted to CAD at period end foreign exchange rates of USD to CAD and Euro to CAD. As at 2018, the total payable under these term loans in US dollars and Euros was US800,436 and 66,432, respectively (December 31, US 787,313 and 71,388, respectively), and the net book value of property and equipment pledged as collateral under these term loans was CAD1,511,303 (December 31, CAD1,429,300). b) Secured by engines - Individual term loans, repayable in quarterly instalments ranging from 68 to 121, including fixed and floating interest at a weighted average rate of 4.440%, maturing between February 2022 and May 2028, each secured primarily by one PW150A engine. These instalments are payable in USD and have been converted to CAD at a period end foreign exchange rate of USD to CAD. As at 2018, the total engine financing payable in US dollars was US8,300 (December 31, US9,134) and the net book value of property and equipment pledged as collateral under Q400 engine financing was CAD13,176 (December 31, CAD 13,647). c) Chorus debt agreements contain covenants, which if breached and not waived by the relevant lenders, could result in the acceleration of indebtedness. Since some of these agreements are cross-defaulted to other debt agreements, a default or acceleration under one agreement could cause a default or acceleration under another agreement. Therefore, if Chorus were to default under its debt agreements, this could have a material adverse effect on Chorus financial position, cash flows and prospects. The principal financial covenants are as follows: Amortizing term loans totaling 854,617, as at 2018, have covenants which apply separately to the "Jazz Group" (comprising Jazz and Jazz Leasing and any entity controlled directly or indirectly by either of them), the "North Bay Leasing Group" (comprising North Bay Leasing, Voyageur Aviation, Voyageur Airways, Voyageur Aerotech and Voyageur Avparts), and various subsidiaries of Chorus Aviation Capital (which hold aircraft acquired for lease to customers outside the Chorus group and the CPA). (7)

14 For the period ended Long-term debt (continued) The Jazz Group is required to maintain a maximum adjusted leverage and a minimum adjusted interest debt coverage ratio. The financing agreement with the lender also contains a covenant respecting the continuation of business under the CPA which is specific to Jazz as the operator of the financed Q400s, Q400 spare engines, and CRJ900s. The North Bay Leasing Group is required to maintain prescribed liquidity levels and a minimum lease coverage ratio. Also, Voyageur Aviation, Voyageur Airways, Voyageur Aerotech and Voyageur Avparts have each provided full recourse guarantees to the lender, and Chorus Aviation Holdings II Inc. has pledged the shares of North Bay Leasing Inc. to the lender. Certain subsidiaries of Chorus Aviation Capital have entered into financing agreements in connection with the acquisition of aircraft. Both Chorus Aviation Capital and Jazz Leasing Inc. ("Jazz Leasing") have guaranteed the indebtedness under these agreements to the lender. Under the terms of the financing agreements, Chorus Aviation Capital is required to maintain a maximum consolidated total debt to tangible net worth ratio and is also prohibited from declaring or paying dividends or other distributions unless its consolidated tangible net worth is equal to at least the prescribed minimum. The indebtedness under these agreements is cross-defaulted to any payment default by Jazz Leasing under its other debt facilities with the lender. It is also cross-defaulted and crosscollateralized to any other debt of Chorus Aviation Capital or its subsidiaries supported by the lender, except debt in respect of which such lender's recourse is generally limited to the borrower entity. Amortizing term loans totaling CAD 109,945 as at 2018 have covenants which apply directly to certain subsidiaries of Chorus Aviation Capital. These entities are required to maintain minimum lease rent coverage ratios. Amortizing term loans totaling 31,603 as at 2018 have covenants which apply directly to Chorus Aviation Leasing Inc., a subsidiary of Chorus Aviation Inc. This entity is required to maintain a minimum consolidated tangible net worth. As at 2018, Chorus (or as applicable, certain subsidiaries) was in compliance with all of these financial covenants. (2) Nova Scotia Jobs Fund loan Term loan repayable in annual instalments of 1,000, bearing interest at a fixed rate of 3.33%, maturing August 31, The loan may be repaid in full or in part at any time without bonus or penalty and is secured by a first security interest in the land and office building located at 3 Spectacle Lake Drive, Dartmouth, Nova Scotia and the assignment of the building tenant leases. For the three and nine months ended 2018, the total interest expense on long-term debt was 11,637 and 33,643, respectively (for the three and nine months ended ,068 and 24,511, respectively). The majority of the following future repayments of long-term debt are payable in US dollars and Euros and have been converted to Canadian dollars at closing rates on The timing of future principal payments is as follows: No later than one year 131,575 Later than one year and no later than five years 713,735 Later than five years 310,319 1,155,629 (8)

15 For the period ended Convertible units In December 2016, Chorus entered into a subscription agreement with Fairfax Financial Holdings Limited ("Fairfax") for an investment of 200,000 in Chorus through a private placement of convertible debt units (the "Convertible Units"). In March 2017, Chorus received gross proceeds of 200,000 upon issuance of the Convertible Units. The net proceeds received by Chorus were 195,972 after deduction of the expenses associated with the placement. Each Convertible Unit comprises a 1.0 senior debenture (a Debenture ) and warrants (the Warrants ). The Debentures bear interest at a rate of 6.00% per annum, are secured by certain Dash 8-100s and Dash 8-300s and certain real estate property owned by Chorus (the Collateral Security ), mature on December 31, 2024 (the Maturity Date ) and are redeemable at par at any time after December 31, 2021, except in the event of the satisfaction of certain conditions after a change of control (in which case Chorus may be required to make an offer to repurchase all of the Debentures) or the exercise of the Warrants. The Collateral Security will be released in the event that Fairfax sells or otherwise disposes of any of the Convertible Units. Each Warrant is exercisable by the holder thereof to acquire one share of Chorus at an exercise price equal to 8.25 per share payable in cash or by tendering the Debentures. Except in certain circumstances relating to a change of control of Chorus, the Warrants may only be exercised after December 31, 2019 up to and including the earlier of the redemption of the Debentures by Chorus and the business day immediately preceding the Maturity Date. The Warrants also include customary anti-dilution provisions. Assuming the exercise of all of the Warrants, Fairfax, through its subsidiaries, would beneficially own 24,242,424 of the issued and outstanding shares of Chorus. The Debentures are listed on the Toronto Stock Exchange under the symbol CHR.DB. Fairfax has agreed to hold the Convertible Units until at least December 31, 2019 after which time it may dispose of all or part of the Convertible Units. The following table illustrates the allocation of the Convertible Units between debt and equity as at Significant judgement was exercised by management in determining this allocation. Cost of borrowing % Debt Equity component of Convertible Units Total ,991 2, ,972 Accretion expense Balance - December 31, ,540 2, ,521 Accretion expense Balance ,101 2, ,082 Transaction costs are capitalized and offset against the debt and equity portions of the Convertible Units and amortized over the life of the Convertible Units using the effective interest rate. For the three and nine months ended 2018, the total interest expense on the Convertible Units was 3,218 and 9,536, respectively (for the three and nine months ended ,205 and 6,625, respectively) which included interest accretion of 193 and 561, respectively (for the three and nine months ended and 368, respectively). (9)

16 For the period ended Income taxes The effective income tax rate on Chorus' earnings before income tax differs from the expected amount that would arise using the combined Canadian Federal and Provincial statutory income tax rates. A reconciliation of the difference is as follows: Three months ended Earnings before income tax 53,230 76,220 Combined statutory tax rate 26.1% 26.0 % Income tax expense at the statutory tax rates 13,893 19,816 Recognition of previously unrecognized cumulative eligible capital (1,856) (1,983) Net impact of capital items (1) (3,115) (6,970) Non-deductible expenses Impact of tax rate changes (14,833) Income tax expense 9,508 (3,085) Effective tax rate 17.9% (4.0)% Nine months ended Earnings before income tax 91, ,062 Combined statutory tax rate 25.3% 26.9 % Income tax expense at the statutory tax rates 23,056 41,733 Recognition of previously unrecognized cumulative eligible capital (5,569) (5,958) Net impact of capital items (1) 6,157 (14,896) Non-deductible expenses 2,519 1,696 Impact of tax rate changes (14,833) Income tax expense 26,163 7,742 Effective tax rate 28.7% 5.0 % (1) The impact of capital items is mainly related to the foreign exchange fluctuations on the long-term debt associated with the purchase of aircraft. The impact of the non-deductible portion of any unrealized loss (gain) is recognized in the calculation of income tax expense at the end of each period. To the extent that a capital loss is recorded for accounting purposes, the benefit of the deductible portion of the loss is recognized only to the extent that it is probable that the loss will be utilized. Income tax expense related to unrealized foreign exchange gains recorded in a period is reduced by previously unrecognized income tax assets related to unrealized foreign exchange losses. Chorus does not have a plan in place to utilize the deductible portion of the balance of the foreign exchange losses, accordingly no deferred tax asset has been recognized related to the foreign exchange losses. (10)

17 For the period ended Income taxes (continued) In addition to the tax deductible amounts recognized as deferred tax assets in the financial statements, Chorus has other tax deductible amounts of approximately 360,921 as at 2018, related to cumulative eligible capital. In accordance with the initial recognition exemption, as outlined in IAS 12, the benefit of these deductible expenditures cannot be recognized in the financial statements until such time as those benefits can be applied to reduce current tax expense. During the three and nine months ended 2018, Chorus utilized a total of 6,666 (1,856 tax effected) and 19,998 (5,569 tax effected), respectively, of these previously unrecognized tax deductions to reduce its taxable income. 10 Capital stock a) Authorized: An unlimited number of Variable Voting Shares, no par value ("Variable Voting Shares"); and An unlimited number of Voting Shares, no par value ("Voting Shares") Issued and outstanding: Number of Shares Shares issued and outstanding December 31, ,182,168 16,819 Shares issued through exercise of stock options 3,227,833 15,593 Shares issued and outstanding December 31, ,410,001 32,412 Shares issued through public offering 13,028, ,498 Shares issued through equity dividend reinvestment plan 1,050,082 8,217 Shares issued through exercise of stock options 76, Shares issued and outstanding ,564, ,497 Public Offering On March 13, 2018, Chorus announced a public offering of 11,628,000 common shares at an offering price of 8.60 per share. In addition, Chorus issued an additional 1,400,000 shares in connection with the partial exercise of the underwriters' over-allotment option. Gross proceeds of the offering were 112,041 (108,498 net of transaction costs and income tax). The net proceeds of the offering are being primarily used to fund the growth of Chorus Aviation Capital, Chorus' aircraft leasing business, including the acquisition of aircraft intended for or currently on lease to third parties, as well as for working capital requirements and other general corporate purposes. Dividend Reinvestment Program ("DRIP") Chorus implemented a DRIP effective February 1, 2018, which provides shareholders who are resident in Canada the opportunity to purchase additional shares using cash dividends paid on shares enrolled in the DRIP. All shares purchased under the DRIP are newly issued by Chorus from treasury, and the proceeds received by Chorus are used for general corporate purposes. (11)

18 For the period ended Capital stock (continued) The price for shares purchased under the DRIP is equal to 100% of the average market price; however, Chorus may, from time to time, offer a discount of up to 5% from the average market price for shares purchased under the DRIP. Currently, Chorus offers a 4% discount and reserves the right to change or eliminate the discount at any time. During the three months ended 2018, 555,422 shares were issued under the DRIP for total value of 4,250. During the nine months ended 2018, 1,050,082 shares were issued under the DRIP for total value of 8,217. The shares issuable by Chorus consist of an unlimited number of Variable Voting Shares and an unlimited number of Voting Shares (collectively, the "shares"). Holders of Variable Voting Shares are entitled to one vote per share unless (i) the number of Variable Voting Shares outstanding, as a percentage of the total number of voting shares of Chorus exceeds 25% or, (ii) the total number of votes cast by or on behalf of holders of Variable Voting Shares at any meeting exceeds 25% of the total number of votes that may be cast at such meeting. If either of the above noted thresholds would otherwise be surpassed at any time, the vote attached to each Variable Voting Share will decrease proportionately such that, (i) the Variable Voting Shares as a class do not carry more than 25% of the aggregate votes attached to all issued and outstanding voting shares of Chorus, and (ii) the total number of votes cast by or on behalf of holders of Variable Voting Shares at any meeting do not exceed 25% of the votes that may be cast at such meeting. Variable Voting Shares are to be held, beneficially owned or controlled, directly or indirectly, by persons who are not Canadians within the meaning of the Canada Transportation Act. Each issued and outstanding Variable Voting Share is converted into one Voting Share automatically and without any further act of Chorus or the holder, if such Variable Voting Share becomes held, beneficially owned and controlled, directly or indirectly, otherwise than by way of security only, by a Canadian, as defined in the Canada Transportation Act. Voting Shares are held, beneficially owned and controlled, directly or indirectly, by Canadians. Each issued and outstanding Voting Share is converted into one Variable Voting Share automatically and without any further act of Chorus or the holder, if such Voting Share becomes held, beneficially owned or controlled, directly or indirectly, otherwise than by way of security only, by a person who is not a Canadian. b) Earnings per share The following table provides a breakdown of the numerator and denominator used in the calculation of earnings per share and diluted earnings per share. Three months ended Nine months ended Numerator Income 43,722 79,305 64, ,320 Denominator Weighted average number of shares 139,296, ,755, ,374, ,803,766 Weighted average dilutive shares 2,494,476 2,945,498 2,658,926 2,780,268 Weighted average number of diluted shares 141,790, ,701, ,033, ,584,034 (12)

19 For the period ended Financial instruments and fair values Financial assets and liabilities have been classified into categories that determine their basis of measurement and, for items measured at fair value, whether changes in fair value are recognized in the statement of income or comprehensive income. Those categories are: fair value through profit or loss; fair value through other comprehensive income; and amortized cost. With the exception of the item noted below, all financial instruments have fair value that approximate carrying value due to their short-term nature. Chorus' financial instruments consist of cash, restricted cash, accounts receivable, asset backed commercial paper, accounts payable and accrued liabilities, dividends payable, long-term incentive plan liability, consideration payable, obligations under finance leases, long-term debt, and Convertible Units. The following financial instruments have a fair value that differs from carrying value: Long-term debt At 2018, long-term debt had a fair value of 1,123,865 compared to a carrying value of 1,155,629. The fair values were calculated by discounting the future cash flow of the respective long-term debt at the estimated yield to maturity of similar debt instruments. Convertible Units At 2018, the Convertible Units had a fair value of 200,661 versus a book value of 194,101. The fair value was calculated by discounting the future cash flow of the respective debt at the estimated yield to maturity of similar debt instruments. Chorus has entered into interest rate swaps on four of its term loans to convert floating interest rates to fixed rates for the duration of each loan. Each interest rate swap is intended to hedge the variability of future interest rates and related interest payments on its respective loan. All interest rate swaps are designated and effective as cash flow hedges. The fair value of interest rate swaps was 1,981 at 2018 and is recorded in other long-term assets. Changes in the fair value of interest rate swaps are recorded in other comprehensive income. During the three and nine months ended 2018, Chorus recognized other comprehensive income of 255 and 1,727, respectively, net of tax (three and nine months ended nil). (13)

20 For the period ended Contingencies As permitted by the CBCA, the by-laws of Chorus provide that each director or officer will be entitled to indemnification from Chorus in respect of any civil, criminal or administrative, investigative or other proceeding which the director or officer is involved because of his or her association with Chorus or any other entity (if applicable) in respect of which he or she serves in a similar capacity at the request of Chorus, provided that the director or officer acted honestly and in good faith with a view to the best interests of Chorus, or in the case of a criminal or administrative action proceeding that is enforced by a monetary penalty, where the director or officer had reasonable grounds for believing that his or her conduct was lawful. The directors and officers are also covered by indemnification agreements and directors and officers liability insurance. The aggregate of all amounts recorded in these financial statements with respect to such indemnifications is not material. Various lawsuits and claims that have arisen in the normal course of business are pending by and against Chorus. The provisions, if any, that have been recorded are not material. It is the opinion of management that final determination of these claims will not have a material adverse effect on the financial position or the results of Chorus. Chorus enters into various operating agreements and real estate licenses or leases, which in some cases permit Chorus to use certain premises or operate at certain airports, and which in other cases lease space in Chorus' facilities to its tenants. It is common in such commercial license or lease transactions for the licensee or tenant to agree to indemnify the landlord for tort liabilities that arise out of or relate to its use or occupancy of the licensed or leased premises. In certain cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but generally excludes any liabilities caused by their gross negligence or wilful misconduct. In addition, the licensee or tenant typically indemnifies the landlord for any environmental liability that arises out of or relates to its use or occupancy of the leased or licensed premises. In aircraft, engine and other equipment ("Equipment") financing or leasing agreements, Chorus typically indemnifies the financing or leasing parties, directors acting on their behalf and other related parties against liabilities that arise from the manufacture, design, ownership, financing, use, operation and maintenance of the Equipment and for tort liability, whether or not these liabilities arise out of or relate to the negligence of these indemnified parties, but generally excluding any liabilities caused by their gross negligence or wilful misconduct. In addition, in certain equipment financing or leasing transactions, Chorus typically provides indemnities in respect of certain tax consequences. When Chorus enters into other types of leases and technical service agreements with service providers, primarily service providers who operate an airline as their main business, Chorus has from time to time agreed to indemnify the other party against liabilities that arise from third party claims, whether or not these liabilities arise out of or relate to the negligence of the other party, but generally excluding liabilities that arise from the other party's gross negligence or wilful misconduct. (14)

21 For the period ended Economic dependence The transactions between Air Canada, and its subsidiary (Air Canada Capital Ltd.), and Chorus are summarized in the table below: Three months ended Nine months ended Operating revenue Air Canada 321, , , ,491 Operating expenses Air Canada 1,891 1,704 4,868 4,636 Air Canada Capital Ltd. 17,012 16,716 50,210 54,653 The following current balances with Air Canada and its subsidiary (Air Canada Capital Ltd.) are included in the financial statements: As at December 31, Accounts receivable Air Canada 44,591 40,655 Accounts payable and accrued liabilities Air Canada 3,153 2,021 Air Canada Capital Ltd. 13,069 8,086 (15)

22 For the period ended Statement of cash flows - supplementary information a) Net changes in non-cash balances related to operations: Three months ended Nine months ended Decrease in accounts receivable trade and other 19,509 3,550 1,547 3,403 Increase in inventories (4,514) (1,976) (1,997) (4,650) (Increase) decrease in prepaid expenses (2,296) 4,451 (4,011) (5,154) Decrease in income tax receivable 1,769 2,959 1,626 2,229 Decrease (increase) in other long-term assets (4,506) 8,602 (Decrease) increase in accounts payable and accrued liabilities (7,679) 25,706 (10,179) 33,212 Increase in unearned revenue 36,767 36,767 Increase (decrease) in current portion of long-term incentive plan (378) (1,595) Increase (decrease) in income tax payable (2,048) Increase (decrease) in other long-term liabilities 2,808 (3,930) (6,920) (12,312) 10,616 68,801 (24,247) 58,454 The above table excludes non-cash transactions related to the foreign currency adjustments. b) Other Three months ended Nine months ended Cash payments of interest 17,149 7,098 45,112 22,722 Cash receipts of interest ,799 1,207 Cash (receipts) payments of tax (397) (3,020) (546) 1,095 (16)